Advantex Announces Fiscal 2019 Third Quarter Results
TORONTO, May 30, 2019 /CNW/ - Advantex Marketing International Inc. (CSE: ADX), a specialist in working capital and loyalty marketing products for merchants, announced its results for the three and nine months ended March 31, 2019.
Highlights of financial results.
3 Months Ended March 31 |
9 Months Ended March 31 |
|||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||
$ |
$ |
$ |
$ |
|||||||||
Revenues |
$ |
1,387,652 |
$ |
1,652,757 |
$ |
5,046,639 |
$ |
5,637,092 |
||||
Direct expenses - Cost of cardholder rewards and marketing |
319,066 |
431,618 |
1,060,689 |
1,458,466 |
||||||||
Direct expenses - Expense for provision against delinquent |
75,630 |
56,316 |
154,580 |
236,372 |
||||||||
Gross profit |
$ |
992,956 |
$ |
1,164,823 |
$ |
3,831,370 |
$ |
3,942,254 |
||||
Selling and General & Administrative |
899,104 |
881,057 |
2,906,194 |
3,131,374 |
||||||||
Earnings from operations before depreciation, amortization |
$ |
93,852 |
$ |
283,766 |
$ |
925,176 |
$ |
810,880 |
||||
Cash interest on loan payable and debentures |
317,143 |
267,381 |
892,515 |
909,791 |
||||||||
Earnings (loss) from operations before depreciation, |
$ |
(223,291) |
$ |
16,385 |
$ |
32,661 |
$ |
(98,911) |
||||
Depreciation and amortization |
6,830 |
8,503 |
19,796 |
25,640 |
||||||||
Non-cash interest expense (accretion charges) and |
136,754 |
131,955 |
409,315 |
138,757 |
||||||||
(Loss) and Comprehensive (loss) before non-recurring item |
$ |
(366,875) |
$ |
(124,073) |
$ |
(396,450) |
$ |
(263,308) |
||||
Gain on debt restructuring |
$ |
- |
$ |
- |
$ |
- |
$ |
1,795,103 |
||||
Net profit/(loss) and Comprehensive profit/(loss) |
$ |
(366,875) |
$ |
(124,073) |
$ |
(396,450) |
$ |
1,531,795 |
||||
The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex's financial performance. The information is extracted from consolidated financial statements for the three and nine months ended March 31, 2019.
About Advantex:
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com
Advantex Marketing International Inc.
Consolidated Statements of Financial Position (unaudited)
(expressed in Canadian dollars)
Note |
At March 31, 2019 |
At June 30, 2018 |
||||
$ |
$ |
|||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
122,298 |
$ |
635,836 |
||
Accounts receivable |
275,699 |
112,322 |
||||
Transaction credits |
5 |
9,303,565 |
5,592,426 |
|||
Prepaid expenses and sundry assets |
60,206 |
79,349 |
||||
$ |
9,761,768 |
$ |
6,419,933 |
|||
Non-current assets |
||||||
Property, plant and equipment |
$ |
26,982 |
$ |
43,969 |
||
$ |
26,982 |
$ |
43,969 |
|||
Total assets |
$ |
9,788,750 |
$ |
6,463,902 |
||
Liabilities |
||||||
Current liabilities |
||||||
Loan payable |
6 |
$ |
8,096,307 |
$ |
4,427,390 |
|
Accounts payable and accrued liabilities |
$ |
2,486,784 |
$ |
2,843,718 |
||
$ |
10,583,091 |
$ |
7,271,108 |
|||
Non-current liabilities |
||||||
9% Non-convertibles debentures payable |
7 |
$ |
4,957,266 |
$ |
4,547,951 |
|
$ |
4,957,266 |
$ |
4,547,951 |
|||
Shareholders' deficiency |
||||||
Share capital |
8 |
$ |
24,530,555 |
$ |
24,530,555 |
|
Contributed surplus |
4,090,382 |
4,090,382 |
||||
Accumulated other comprehensive loss |
(47,383) |
(47,383) |
||||
Deficit |
(34,325,161) |
(33,928,711) |
||||
Total deficiency |
$ |
(5,751,607) |
$ |
(5,355,157) |
||
Total liabilities and deficiency |
$ |
9,788,750 |
$ |
6,463,902 |
||
Economic/Financial dependence and Going Concern (note 2), Commitments and contingencies (note 11) |
|||||||
The accompanying notes are an integral part of these consolidated financial statements |
|||||||
Approved by the Board |
|||||||
Director: Signed |
"William Polley" |
Director: Signed |
"Kelly Ambrose" |
||||
William Polley |
Kelly Ambrose |
||||||
Advantex Marketing International Inc.
Consolidated Statements of Profit/(Loss) and Comprehensive Profit/(Loss) (unaudited)
For the three and nine months ended March 31, 2019 and 2018
(expressed in Canadian dollars)
Note |
Three months ended March 31 |
Nine months ended March 31 |
||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||
$ |
$ |
$ |
$ |
|||||||||
Revenues |
14 |
$ |
1,387,652 |
$ |
1,652,757 |
$ |
5,046,639 |
$ |
5,637,092 |
|||
Direct expenses |
13/14 |
394,696 |
487,934 |
1,215,269 |
1,694,838 |
|||||||
992,956 |
1,164,823 |
3,831,370 |
3,942,254 |
|||||||||
Operating expenses |
||||||||||||
Selling and marketing |
13/14 |
320,156 |
400,171 |
1,175,620 |
1,323,033 |
|||||||
General and administrative |
13/14 |
578,948 |
480,886 |
1,730,574 |
1,808,341 |
|||||||
Earnings from operations before depreciation, |
$ |
93,852 |
$ |
283,766 |
$ |
925,176 |
$ |
810,880 |
||||
Interest expense: |
||||||||||||
Stated interest expense - loan payable, and debentures |
6/7 |
317,143 |
267,381 |
892,515 |
909,791 |
|||||||
Non-cash interest expense (accretion charges) and restructuring bonus related to debentures |
7 |
136,754 |
131,955 |
409,315 |
138,757 |
|||||||
(360,045) |
(115,570) |
(376,654) |
(237,668) |
|||||||||
Depreciation of property, plant and equipment, and |
6,830 |
8,503 |
19,796 |
25,640 |
||||||||
(Loss) and comprehensive (loss) before non-recurring item |
$ |
(366,875) |
$ |
(124,073) |
$ |
(396,450) |
$ |
(263,308) |
||||
Gain on debt restructuring |
7 |
$ |
- |
$ |
- |
$ |
- |
$ |
1,795,103 |
|||
Net profit/(loss) and comprehensive profit/(loss) |
$ |
(366,875) |
$ |
(124,073) |
$ |
(396,450) |
$ |
1,531,795 |
||||
Profit/(Loss) per share |
||||||||||||
Basic and Diluted |
12 |
$ |
(0.00) |
$ |
(0.00) |
$ |
(0.00) |
$ |
0.00 |
|||
The accompanying notes are an integral part of these consolidated financial statements |
Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency (unaudited)
For the three and nine months ended March 31, 2019 and 2018
(expressed in Canadian dollars)
Class A |
Common |
Contributed |
Accumulated |
Deficit |
Total |
||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||
Balance - July 1, 2017 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(35,153,009) |
$ |
(6,579,455) |
|||||
Net profit/(loss) and |
- |
- |
- |
- |
1,531,795 |
1,531,795 |
|||||||||||
Balance - March 31, 2018 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(33,621,214) |
$ |
(5,047,660) |
|||||
Balance - July 1, 2018 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(33,928,711) |
$ |
(5,355,157) |
|||||
Net profit/(loss) and |
- |
- |
- |
- |
(396,450) |
(396,450) |
|||||||||||
Balance - March 31, 2019 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(34,325,161) |
$ |
(5,751,607) |
|||||
The accompanying notes are an integral part of these consolidated financial statements |
Advantex Marketing International Inc.
Consolidated Statements of Cash Flow (unaudited)
For the three and nine months ended March 31, 2019 and 2018
(expressed in Canadian dollars)
Note |
At March 31, 2019 |
At March 31, 2018 |
||||
$ |
$ |
|||||
Operational activities |
||||||
Net profit/(loss) for the period |
$ |
(396,450) |
$ |
1,531,795 |
||
Adjustments for: |
||||||
Depreciation of property, plant and equipment, and amortization of intangible assets |
19,796 |
25,640 |
||||
Accretion charge for debentures |
7 |
222,932 |
70,734 |
|||
Restructuring bonus for debentures |
7 |
186,383 |
68,023 |
|||
Non-cash portion of gain on debt restructuring |
- |
(1,283,611) |
||||
32,661 |
412,581 |
|||||
Changes in items of working capital |
||||||
Accounts receivable |
(163,377) |
(12,216) |
||||
Transaction credits |
(3,711,139) |
(466,685) |
||||
Inventory |
- |
16,978 |
||||
Prepaid expenses and sundry assets |
19,143 |
(408) |
||||
Accounts payable and accrued liabilities |
(356,934) |
(630,833) |
||||
(4,212,307) |
(1,093,164) |
|||||
Net cash provided by (used in) operating activities |
$ |
(4,179,646) |
$ |
(680,583) |
||
Investing activities |
||||||
Purchase of Property, plant & equipment |
$ |
(2,809) |
$ |
(2,344) |
||
Net cash (used in) investing activities |
$ |
(2,809) |
$ |
(2,344) |
||
Financing activities |
||||||
Proceeds - 9% Non-convertible debentures payable |
7 |
$ |
- |
$ |
400,000 |
|
Proceeds - Loan payable |
6 |
3,668,917 |
260,198 |
|||
Net cash generated from / (used in) financing activities |
$ |
3,668,917 |
$ |
660,198 |
||
(Decrease) in cash and cash equivalents during the period |
$ |
(513,538) |
$ |
(22,729) |
||
Cash and cash equivalents at beginning of period |
635,836 |
367,357 |
||||
Cash and cash equivalents at end of period |
$ |
122,298 |
$ |
344,628 |
||
Additional information |
||||||
Interest paid |
$ |
766,969 |
$ |
474,097 |
||
For purposes of the cash flow statement, cash comprises |
||||||
Cash |
$ |
122,298 |
$ |
344,628 |
||
The accompanying notes are an integral part of these consolidated financial statements |
||||||
SOURCE Advantex Marketing International Inc.
Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 905-470-9558 ext. 249, Email: [email protected]
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